If you are struggling with paying your bills, one thing that you may be worried about is foreclosure. If foreclosure is a real and potential problem, the good news is that there are some alternatives to foreclosure that you may be able to access.
Before you turn to foreclosure or ask about bankruptcy, take a look at these options. You may be able to get your mortgage back on track.
1. Talk to your lender
The first thing to do is to get in touch with your lender. Lenders don’t want to see homeowners be unable to pay what they owe, because the foreclosure process is a major hassle for them, too. Instead, they may offer options like forbearances or deferments for a short time, until you can get your finances back on track.
2. Commit to a short sale
The next option is to commit to a short sale. If your home isn’t worth more than what you owe on your mortgage, you may be able to get your lender to agree to selling it for less than you owe. If that happens, they may agree to forgive the remaining loan amount.
3. Refinance your home
Another option is to refinance your home. If you refinance your home, you may be able to lower your payments to an amount you can afford.
4. Rent a room
Finally, consider renting a room. If you’re only a little bit short each month, then this could be a great way to make up the difference.
Our website has more information on real estate transactions and what to do if you could be facing a foreclosure in the future.